Daniel Loeb

Daniel Loeb

Last Update: 11-13-2015

Number of Stocks: 31
Number of New Stocks: 4

Total Value: $10,535 Mil
Q/Q Turnover: 37%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Daniel Loeb Watch

  • Facebook, McDonald's Among Guru Stocks Outperforming S&P 500

    The following are some of the stocks that outperformed the S&P 500 Index over the last 12 months and have been bought by gurus during the last quarter.


    Facebook Inc. (FB) with a market cap of $327.41 billion, during the last 12 months has outperformed the S&P 500 Index by 55.7% and currently, 14 gurus are holding the stock that has returned 14% year-to-date and 205% during the last five years. It is now trading with a P/E ratio of 116.45 but according to the DCF calculator, it looks overpriced by 1,000%.

      


  • Dan Loeb's Third Point Re a Tremendous Value

    It’s not often that you can buy into a legendary value investor hedge fund at a discount. Third Point Re (NYSE:TPRE) might be the exception.


    Ever since Warren Buffett’s Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) found long-term success, hedge fund managers have scrambled to set up their own insurance companies. In this structure, the insurance entity focuses on underwriting policies, while the premiums are managed by the hedge fund manager.

      


  • Stocks Trading With Low PS Ratio, Wide Margin of Safety

    According to GuruFocus' All-In-One Screener, the following are stocks of companies with a market cap above $5 billion that are trading with a very low P/S ratio.


    Dow Chemical Co. (DOW) is trading at about $41 with a P/S ratio of 0.98, a trailing 12-month P/E multiple of 10.69 and an estimated forward P/E multiple of 10.49. The company has a market cap of $47.87 billion and over the last 10 years, the stock has dropped by 3%. During the last 52 weeks, the price has been as high as $57.10 and as low as $35.11.

      


  • Jana Partners Dumping Half of Hertz Holdings

    Guru Jana Partners (Trades, Portfolio) seriously started racking up its exposure to Hertz (NYSE:HTZ) at the end of 2014.


    Ultimately Jana Partners (Trades, Portfolio) owned about 41 million shares of the car rental business that owns the Hertz, Dollar, Thrifty and Firefly brands. Its network of rentals spans the globe with storefronts across North America, Europe, Latin and South America, Asia, Australia, Africa, the Middle East and New Zealand. Back at the end of August the company started decreasing its exposure, but now it has seriously cut back on its stake, selling 44.70% at once.

      


  • Richard Pzena's Undervalued Stocks Trading With Low P/Es

    Richard Pzena is founder and co-chief investment officer of Pzena Investment Management LLC with more than $24 billion under management. Pzena started the firm in 1995. He earned a B.S. summa cum laude and an M.B.A. from the Wharton School of the University of Pennsylvania in 1979 and 1980.


    The following are the stocks of his portfolio that are undervalued and are trading with a low P/E ratio.

      


  • Dan Loeb's Largest 3rd Quarter Investment Was Kraft Heinz Co.

    Billionaire Daniel Loeb (Trades, Portfolio) founded the hedge fund Third Point in 1995, which manages about $17 billion. Loeb is an activist investor and Third Point follows an event-driven, value-oriented investment style.

    During the third quarter, Loeb added four new holdings to the portfolio, while closing out 17 other positions.  


  • Why Daniel Loeb Is Putting 15% of His Portfolio Into Baxter

    Guru Dan Loeb leads Third Point LLC and recently built up a large stake in Baxter International (NYSE:BAX), which now makes up about 15% of his portfolio. Since that time he has requested and been granted two board seats and helped to install the new CEO. Loeb has not taken the aggressive approach (given the soft tone of his letter to the company) he is known for that usually tends to grab the attention of the financial media. It’s a bit of a stretch to say this one is flying under the radar, but it definitely has not attracted as much attention as his Sotheby’s (BID) or Sony campaigns.


    There are a few clear reasons for his soft approach. Baxter was already in need of a new CEO; Loeb just wanted to get involved in that search and he brings a lot of expertise to the table. He is, after all, somewhat of a specialist in kicking people out, which inevitably requires you put in someone new who is actually an improvement. His usual venemous rhetoric was not required to get a shareholder value centric CEO Joe Almeida of Covidien (COV), installed. Almeida really has a pretty good track record for value creation:

      


  • David Einhorn and Dan Loeb Love This Company

    With a market cap under $400 million, a complex business structure and a winding operating past, it's little wonder that most investors haven't heard of Green Brick Partners Inc. (GBRK).


    Green Brick Partners is a residential real estate company that develops residential communities and holds interests in several different homebuilders. According to its website, it controls approximately 4,800 prime home sites, originates approximately 1,000 secured first lien loans each year and owns a controlling interest in four homebuilding companies in Dallas as well as the fifth-largest homebuilder in Atlanta.

      


  • Daniel Loeb Comments on Seven & i Holdings

    Seven & i Holdings


    During the third quarter, we continued to add to our investment in Japan's Seven & i Holdings (TSE:3382) (the parent company for the 7-Eleven franchise) at attractive valuations. The company has a $40 billion market cap and derives more than 100% of its cash flow from the operation of a 90%-franchised convenience store network in Japan, the U.S. and Southeast Asia.

      


  • Daniel Loeb Comments on Baxter International Inc.

    Baxter International Inc.


    During position: the third quarter, we disclosed a 9.9% stake in Baxter International Inc. making us the company’s largest shareholder. Baxter provides critical, life-saving materials to patients and physicians in over 100 countries with an emphasis on renal care and medical products.

      


  • Daniel Loeb Increases Bet on Japan as Existing Holdings Decline

    Daniel Loeb (Trades, Portfolio)’s conviction on Japan he made public several years ago has not abated this year as he made clear by taking several stakes in the country in recent months. As he discloses a new activist long position in the country, Seven & i, several of his positions have yet to post gains.


    The investor’s interest in Japan lies primarily in Prime Minister Shinzo Abe’s economic reforms. Loeb believed they could open Japanese companies to American-style investor influence for the first time, laying bare corporate weaknesses and creating a hotbed for activist investors such as him. Loeb, founder of the hedge fund Third Point, declined to comment, but his staff pointed to a Wall Street Journal piece from several years ago in which he outlined his views on the country.

      


  • Third Point's Third Quarter Letter

    Daniel Loeb's Third Point has released their third quarter letter to shareholders. In the letter Loeb discusses macroeconomics and the Federal Reserve's fiscal policy. Loeb also discusses his firm's 9.9% stake in Baxter Intenational Inc. (NYSE:BAX).


    Third Point Letter:

      


  • Undervalued Stocks With Low P/E Among Meridian Funds' Holdings

    Richard Aster is the founder of Aster Investment Management Company and he manages both Meridian Value Fund and Meridian Growth Fund. According to GuruFocus the hedge funds have a total value of $2,681 million and the following are the top 5 of the 149 stocks of the portfolio that are trading with a wide margin of safety according to the DCF calculator and with a a low P/E ratio.


    Baxter International Inc.

      


  • Loeb, Ackman's Portfolios Post Losses for Year as Top Bets Fall

    During a volatile market during the third quarter, several prominent hedge funds saw their returns decline.


    Pershing Square, Bill Ackman (Trades, Portfolio)’s fund, fell 12.5% in September, bringing its total third quarter decline to 15.3%. This compares to the HFRX Equity Hedge Index low of 2.08% for September. It also declined 12.6% for the first three quarters of the year, compared to the index decline of 3.13%. The first two weeks of the fourth quarter fared better, up 3.6%, but the total year-to-date decline still languished at 9.4%.

      


  • Is Baxalta a Good Spin-Off Opportunity?

    A number of well-known guru investors hold Baxalta (NYSE:BXLT), the biopharmaceutical pure-play spin-off from medtech parent Baxter. These include Tweedy Browne (Trades, Portfolio), Daniel Loeb (Trades, Portfolio) and Richard Pzena (Trades, Portfolio). Is it a good buy for investors at a current price of $33?


    In this stock note, I consider historical performance, upside, risks, valuation and a suggested buy price.

      


  • McKesson Officer Sells 101,835 Shares of Company

    McKesson Corp. (MCK) CEO, President and Chairman John Hammergren (Insider Trades) sold 101,835 shares of the company on Oct. 12. The average price per share was $190.51. McKesson is a healthcare service and information technology company dedicated to making the business of healthcare run well. The company has a market cap of $44.11 billion and a P/S ratio of 0.24.


    The number and volume of insider sells ranged from 24 to 45, and 724,166 shares to 1,718,598 shares from 2012 to 2015. Despite the nearly 100% increase of month end price in those years, the number and volume of insider sells did not increase accordingly. On average, each insider buy during this period of time amounted to about 30,000 shares. Hammergren sold 2,750,000 shares of the company in 21 transactions since August 2010. His earliest transaction increased about twofold since then. There were no insider buys during this time. 1444860871892.png 1444860878438.png For more information about insider transactions of the company, click here.

      


  • Activist Hedge Fund Manager Dan Loeb Increases Position in Leading Biotech Company

    Daniel Loeb’s Third Point LLC disclosed Wednesday that he increased his stake in Baxter International Inc. (NYSE:BAX), a medical equipment and supplies company, by purchasing an additional 11.97 million shares at an average price of $32.69 per share.


    After the transaction, the trader held 53.85 million shares. The stock has dropped 15.48% over the past year and traded around $32.85 per share by Wednesday closing, which was near its May price.

      


  • Apigee CEO Buys 5,000 Shares of Company

    Chetan Kapoor (Insider Trades), CEO and president of Apigee Corp. (APIC), bought 5,000 shares on Tuesday. The average price per share was $10.03, for a total transaction of $50,150. Apigee provides an intelligent API platform for digital business. The company’s market cap is $309.75 million, and P/S ratio is 4.39.


    Seven APIC insiders bought 320,844 shares in seven total transactions since April. The earliest transaction decreased about 40% in price since the purchase. Kapoor’s buy on Tuesday contributed to only 1.6% of the sum of insider shares bought since April. Stacey Giamalis (Insider Trades), APIC chief counsel, bought 344 shares in the company today. The average price per share was $10.48. Another company insider, Anant Jhingran (Insider Trades), APIC chief technology officer, bought 3,800 shares of the company on Friday. The average price per share was $10.73. 1443644300598.png 1443644310152.png

      


  • Charles Brandes' Most Weighted Trades in Q2 2015

    Charles Brandes is the chairman of Brandes Investment Partners. He manages a portfolio composed of 195 stocks with a total value of $7.80 billion and the following are his most weighted trades in the last quarter :


    He reduced his stake in Masco Corp. (MAS) by 34.23% with an impact of 0.67% on his portfolio.

      


  • Activist Hedge Fund Manager Dan Loeb Decreases Position in Leading Biotech Company

    Daniel Loeb's Third Point disclosed an equity portfolio valued at some $10.68 billion at the end of the second quarter. Among the 10 largest holdings from Loeb’s equity portfolio (which comprises 56.81% of the total portfolio value), the three top positions are: Amgen Inc. (NASDAQ:AMGN), Dow Chemical Company (NYSE:DOW) and Allergan PLC (NYSE:AGN).


    Amgen is a $110.26 billion market cap company that has major treatments for anemia, neutropenia, rheumatoid and psoriatic arthritis, psoriasis, cancer and osteoporosis.

      


  • Undervalued Stocks Among Mario Gabelli's Recent Buys

    Mario Gabelli (Trades, Portfolio) is the founder, chairman and CEO of Gabelli Asset Management Company Investors (GAMCO Investors) and at the end of the last quarter, his portfolio was composed of 834 stocks with a total value of $18.5 billion.


    According to GuruFocus' All-In-One screener, the following are the companies he recently bought with a wide margin of safety.

      


  • Dan Loeb Buys T-Mobile During Second Quarter

    Activist investor Daniel Loeb (Trades, Portfolio) founded hedge fund Third Point LLC in 1995, which today manages about $17 billion in assets. The firm’s strategy involves identifying situations with a catalyst that will unlock value.


    Loeb is well-known for penning scathing public letters to CEOs and companies he disapproves of, prompting Vanity Fair to publish excerpts of his top 10 letters in a 2013 feature.

      


  • Stocks Gurus Are Buying - Part I

    According to GuruFocus' All-in-One screener, the following stocks were six of the most popular among the gurus during the past three months. 



      


  • Dan Loeb Sees Opportunity in Latest Target Baxter International

    Serial 13D-filer Daniel Loeb (Trades, Portfolio) defended shareholder activism in his July letter and moved on to his next target, Baxter International (NYSE:BAX), on Tuesday.


    The company of which Loeb’s Third Point purchased 37,925,000 shares – a 7% stake costing $1.52 billion – has already shaken itself up somewhat. It spun off its biopharmaceutical business, Baxalta (NYSE:BXLT), on July 1, and is focusing on home, hospital and in-center therapies. Its board has also formed a working group to search for a new CEO, as its current chief executive, Bob Parkinson, 64, has spent 11 years at the company.

      


  • Daniel Loeb's Third Point Second Quarter Investor Letter

    Review and Outlook


    On June 1st, Third Point completed its 20th year of investing. Since we like numbers, we will share some statistics about our performance. Over the past two decades, we have generated annualized returns of 20.5%, cumulative returns of over 4000%, and gross trading profits of over $12 billion for our investors. Over the same period, the S&P 500 had annualized returns of 9.1% and cumulative returns of 475%. Our average monthly return has been 1.6% and our average quarterly return has been 5.0%, each roughly double the S&P’s return over the same periods. Finally, we have done this with a correlation to the S&P of only 0.4.1

      


  • A Look at June's Hedge Funds Returns

    The $3 trillion hedge-fund industry tumbled probably due to two important effects. On the one hand, Greece’s debt situation and on the other hand the recent performance of the Chinese stocks. In simple words, June was a bad month for stocks and for hedge funds, too.


    The Hedge Fund Research HFRI Weighted Composite Index dropped 1.3% and that percentage is its worst monthly loss since June 2013. In June, the HFRI Macro Index fell 2.4% and ended with the year to date gains of that index. In line with this, the SPDR S&P 500 ETF Trust (SPY) returned a negative 2.5% in June, but the total returns for the index for the year through Jul 14 was 2.3%.

      


  • Martin Whitman Recent Buy: Masco Corp

    Martin Whitman (Trades, Portfolio) is founder and portfolio manager of the Third Avenue Value Fund. Whitman is a 1949 graduate of Syracuse University, which recently renamed its School of Management after Whitman, after a large gift from him in June 2003. He is an adjunct faculty member at Yale School of Management.


    During 2015 Q2 the investor bought a big stake of Masco Corp (MAS) with an impact of 2.13% on his portfolio. He bought 1,479,930 shares that is the 0.43% of outstanding shares of the company. Since that buy, the price of the stock didn’t face any change.

      


  • Daniel Loeb Parts With Stake in Alibaba

    Hedge fund manager Daniel Loeb (Trades, Portfolio), the founder and chief executive of Third Point LLC, a New York-based hedge fund with a $14 billion portfolio, is known for his public letters that have been critical of CEOs and other investment managers. His approach to investing is event-driven and value-oriented.


    While he has said he is only interested in making money for his investors, his personal portfolio activity in the first quarter shows he is also interested in making money for himself as well.

      


  • FedEx Is a Long-Term Buy

    In this article let's take a look at FedEx Corporation (NYSE:FDX), the leader in global express delivery services, which provides guaranteed domestic and international air express, residential and business ground package delivery, heavy freight and logistics services.


    Although revenue increased, when compared to the same quarter one year before, it was below the forecast. Also, the company reported weaker earnings than expected from analyst estimates. Earnings of $2.66 per share missed estimates of $2.68. Among the reasons we found were the currency translation and the falling fuel surcharges. After the earnings were released, the stock price plummeted by 3% to $176. In what we consider a five-year period, EPS has grown by 14% annually.

      


  • Dan Loeb increases his stake in Roper Industries

    Daniel Loeb (Trades, Portfolio) is a well-known activist investor. He founded Third Point LLC in 1995 and leads the firm’s research activities, portfolio, and risk management. Third Point’s total assets are more than $2.2 billion, and Loeb’s personal net worth is $2.3 billion.


    Last quarter, Loeb bought 300,000 shares of Roper Industries (NYSE:ROP). As of March 31, 2015, he was holding 1.6 million shares of the company. The following chart shows Dan Loeb's holding history in the company.

      


  • Daniel Loeb's New Positions for 1QFY15

    Daniel Loeb (Trades, Portfolio) of Third Point, LLC recently added nine new positions to his portfolio during 1QFY15. He currently owns 40 stocks and his portfolio has a total value around $10.76 billion and a 14% quarter over quarter turnover.


    27.2% of Loeb's portfolio is made up of stocks in the healthcare sector. Next is the consumer cyclical sector, which consists of 14.3% of his portfolio and basic materials, which is 12.3% of the portfolio.

      


  • Daniel Loeb's Third Point First Quarter 2015 Commentary

    First Quarter 2015 Investor Letter

    I founded Third Point on June 1, 1995 with $3.4 million in capital from five intrepid investors – all close friends and family – and my own nest egg. My goals were to compound at 20% and grow to $20 million in assets. Nearly twenty years later, we have been able to meet our initial return goals (despite over-shooting our asset base target) as a result of remarkable individuals who have come together to form our team. The keys to our success have been remaining entrepreneurial, creative, committed to organizational and individual improvement, rigorous about our process, and singularly focused on achieving superior risk-adjusted returns for our investors.

      


  • Manning & Napier Jump Into Alibaba

    Manning & Napier Advisors Inc. was founded in 1970 and as of December 31, 2014 the company was managing $47.8 billion in assets. The portfolio is composed of 369 stocks and has a Q/Q Turnover of 29%.


    During 1Q2015, the company traded many stocks, but the main addition was to Alibaba Group Holding Ltd. (BABA), with an increase of 11489.89%, which resulted in a weight of 0.65% to the portfolio. BABA is part of the Retail – Apparel & Speciality sector.

      


  • Should You Buy EBay Post Recent Analyst Upgrade?

    Recently, Susquehanna analyst James Friedman upgraded his rating on eBay (NASDAQ:EBAY) to buy from neutral. He also raised his stock price target to $75, which implies significant upside from the current levels. Friedman is bullish about Paypal's business prospects once it demerges from eBay.


    In addition to positive sell side commentary eBay has also seen a lot of interest from fund managers of late. Last quarter, Seth Klarman (Trades, Portfolio), Daniel Loeb (Trades, Portfolio), Larry Robbins (Trades, Portfolio), Leon Cooperman (Trades, Portfolio), NWQ Managers (Trades, Portfolio), Jana Partners (Trades, Portfolio), PRIMECAP Management (Trades, Portfolio), Murray Stahl (Trades, Portfolio), RS Investment Management (Trades, Portfolio) and Louis Moore Bacon (Trades, Portfolio) increased their stake in the company.

      


  • A look at Daniel Loeb's investment in Delta Airlines

    Airline companies are notorious for burning cash. Serial Entrepreneur Richard Branson once said, "If you want to be a millionaire, start with a billion dollars and launch a new airline". With falling oil prices, things appear to have been turning around for the sector. Most of the airline stocks have seen good run up over the last few months backed by improved profitability. Many big name investors are now looking for quality names in the sector.


    Last quarter, Billionaire Hedge fund manager Daniel Loeb (Trades, Portfolio) initiated a position in Delta Airlines (DAL) by buying 3.85 million shares. This is the first time he has taken a stake in the company.

      


  • Analyzing Daniel Loeb's Top Buys: Masco Corporation

    Daniel Loeb (Trades, Portfolio) is well known activist investor. He founded Third Point LLC in 1995 and leads the firm’s research activities, portfolio, and risk management. Third Point’s total assets are more than $2.2 billion, and Loeb’s personal net worth is $2.3 billion.


    Last quarter, Loeb bought 1.9 mn shares of Masco Corporation (NYSE:MAS). As of December 31, 2014, he was holding 10 mn shares of the company. The following chart shows Dan Loeb's holding history in the company.

      


  • Daniel Loeb's Comments on Fanuc

    During the fourth quarter we invested in Fanuc ( FANUY), the leading factory automation and robotics company in the world with a market capitalization of $33 billion and an enterprise value of $25 billion. Based in Japan and spun out of Fujitsu in the 1970’s, Fanuc is a unique company with a long history of being the best and fastest to market in everything it does. Its visionary founder describes the Company’s mission as “walking the narrow path,” which refers to its relentless focus on producing only a limited number of products that are technically superior with the lowest possible cost structure. This targeted innovation combined with a strong emphasis on reliability and service has made virtually all of Fanuc’s products blockbusters. While serving completely different, cyclical markets, Fanuc reminds us of Apple in its product approach.


    In its core Factory Automation division, Fanuc has capitalized on structural growth in automation by creating a huge moat in Computerized Numerical Control (“CNC”) systems and servo motors. It has become the global standard for machine tool control software and motors with a worldwide market share of 60%. The Company has built a global service/aftermarket support organization that is unrivaled by competitors in a business where switching costs are high. The division’s revenue correlates closely to Japanese machine tool orders, which are on the rise for multiple reasons including strong demand from the US and a depreciating yen. Additionally, Chinese factory automation is a substantial growth opportunity as rising wages, low productivity, and quality issues force companies in the region to automate. To get a sense of the opportunity: China’s CNC penetration rate of 30% today equals Japan’s levels 40 years ago. Fanuc is expanding CNC capacity by 40% in the next twelve months to meet these higher demand levels. Fanuc’s Robots division has achieved a cumulative sales growth of 60% in the past two years, capitalizing on a robust opportunity set across all major economies. In China, automotive industry robot density is still at less than 15% of the levels seen in Japan, while general industry robot density is at less than 5% of Japan’s. In Japan, capital equipment replacement demand, some re-shoring of manufacturing and labor shortages are creating multiple drivers for robot demand. The resurgence in US manufacturing is also providing strong demand, as automotive and general industry customers are increasing orders for lifting, picking, welding, painting, and dispensing robots. Virtually every large manufacturing footprint expansion in North America – from Airbus to Ford to Tesla – is taking place with Fanuc’s robots. Fanuc’s internal development of low cost full artificial vision systems and collaborative robots makes it best positioned to drive adoption in industries that have traditionally been unable to automate. We think that these innovations will double the size of the Robots division in only a few years.

      


  • Investors Should Bet on this New York City-Based Insurer

    In this article, let's take a look at American International Group, Inc. (NYSE:AIG), a $75.29 billion market cap company that is a leading international insurance organization, which was rescued by various government entities in the financial crisis of 2008.


    Reverting 2008 crisis

      


  • Analyzing Daniel Loeb's Top Picks: eBay Inc (EBAY)

    Daniel Loeb (Trades, Portfolio) founded Third Point LLC in 1995 and leads the firm’s research activities, portfolio, and risk management. He is well known for his public letters in which he criticizes company CEOs or other investment managers. Third Point’s total assets are more than $2.2 billion, and Loeb’s personal net worth is $2.3 billion. Loeb and Third Point focus on activist investing, and follows an event-driven, value-oriented investment style. Loeb identifies situations in which a catalyst will unlock value. Last quarter Daniel Loeb (Trades, Portfolio) increased his holdings in eBay (NASDAQ:EBAY) by 122%. He currently holds 10 mn shares of the company. Here's a look at the company in detail.


    Company overview

      


  • Paul Tudor Jones Is Betting on the SPY, Should You?

    Over the past days hedge funds have been filing their form 13-F, which is a quarterly report of equity holdings by filed institutional investment managers with at least $100 million in equity assets under management, as required by the United States Securities and Exchange Commission (SEC).


    Hedge funds bought more than 15 million shares of the SPDR S&P 500 ETF Trust (SPY) worth $3.4 billion last quarter, according to data from 13-F filings compiled by Bloomberg. This ETF was the third-biggest aggregate increase in position by market value.

      


  • Why Hedge Fund Titans Like Delta Airlines (DAL)

    With crude prices declining, many investors are getting interested in airline stocks. Delta Airlines (NYSE:DAL), in particular, has seen many big name investors like Daniel Loeb (Trades, Portfolio), Julian Robertson (Trades, Portfolio), John Griffin (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), Ken Heebner (Trades, Portfolio) and Whitney Tilson (Trades, Portfolio), buying its shares last quarter. The company's stock price has gained ~300% since the beginning of 2013, but its relative valuation is still one of the lowest among all S&P Industrial companies (see graph below).


    Delta's Relative Valuation versus S&P industrials

      


  • Daniel Loeb's Top 5 New Stock Buys of the Fourth Quarter

    Daniel Loeb (Trades, Portfolio), the CEO of hedge fund known for its periodic activist ventures Third Point, had significant portfolio turnover of 40% in the fourth quarter, with 12 new stocks added.


    In his fourth quarter shareholder letter, Loeb discussed his investing point of view for the current environment:

      


  • Daniel Loeb Comments on Fanuc Corp

    Equity Position: FANUC (TSE:6954, FANUY, FANUF)


    During the fourth quarter we invested in Fanuc (the “Company”), the leading factory automation and robotics company in the world with a market capitalization of $33 billion and an enterprise value of $25 billion. Based in Japan and spun out of Fujitsu in the 1970’s, Fanuc is a unique company with a long history of being the best and fastest to market in everything it does. Its visionary founder describes the Company’s mission as “walking the narrow path,” which refers to its relentless focus on producing only a limited number of products that are technically superior with the lowest possible cost structure. This targeted innovation combined with a strong emphasis on reliability and service has made virtually all of Fanuc’s products blockbusters. While serving completely different, cyclical markets, Fanuc reminds us of Apple in its product approach.

      


  • Daniel Loeb Comments on Amgen Inc

    Equity Position: Amgen (AMGN)


    Our biggest winner in 2014 was our equity position in the biotechnology company Amgen. In our last letter and at the Robin Hood Investment Conference, we highlighted Amgen as a hidden value situation where investor skepticism in three areas – R&D productivity, operating efficiency, and capital allocation – had obscured the company’s fundamental value.

      


  • Daniel Loeb’s Third Point Q4 2014 Investor Letter

    Review and Outlook


    Since the financial crisis, managing volatility and risk has proven to be almost as important as good stock-picking in generating investment returns. Last year emphasized this lesson, as investors struggled to cope with five drawdowns of greater than 3.9% in the SPX followed by swift rebounds within weeks. Third Point’s mediocre 2014 results, +5.7% in Offshore and +6.8% in Ultra, were due to a combination of poor trading during market volatility and bad judgment in exiting positions for reasons ranging from “overstaying our welcome” to impatience seeing our thesis through in choppy markets. Fortunately, there were bright spots in structured finance and enough winners in equity and government credit to help us eke out a mid-single digit return for our investors.

      


  • Why Soros, Burbank and Cohen Bought this Fairly Valued Stock

    In this article, let's take a look at Anheuser-Busch InBev SA/NV(NYSE:BUD), a $184.78 billion market cap company that is a brewing company and manages a portfolio of over 200 brands of beer.


    Good dividend yield

      


  • Different Hedge Fund Managers Bought and Added Molson Coors Brewing

    In this article, let's take a look at Molson Coors Brewing Company (NYSE:TAP), a $14.01 billion market cap company, which is the fifth largest brewer in the world, was formed in early 2005 via the combination of Adolph Coors Co. and Molson, Inc.


    Light Beer

      


  • The Broken-Leg Problem: Q&A with Abnormal Returns’ Tadas Viskanta about Deep Value

    Earlier this week I did a Q&A withAbnormal Returns’ Tadas Viskanta about Deep Value. Tadas sees more finance and investing content than anyone else, so it’s always interesting to see what he takes away from a topic:


      


  • Daniel Loeb Comments on Sony Corp

    In May of 2013, Third Point announced a significant stake in Sony (SNE) and suggested to the company’s CEO, Kazuo Hirai, that he should seriously consider spinning out 15‐20% of the company’s undervalued, American-based Entertainment business. At the time, we explained that partially listing the Entertainment segment would have three positive effects: 1) highlighting its profitability; 2) increasing investor transparency, thereby allowing the market to properly benchmark the company against its global media peers; and 3) incentivizing Entertainment’s management to run the company more efficiently by engaging in cost cutting and laying out clear earnings targets.


    While, regrettably, the Company rejected our partial spin-out suggestion, they made some changes that were consistent with our goals. In the Entertainment business in particular, Sony has cut costs, improved its dialogue with investors, and undertaken key management changes. In Electronics, Mr. Hirai’s team deserves credit for transitioning away from personal computers this year and improving television profitability in 2015. They have also improved investor transparency. Still, they have a long way to go and we continue to believe that more urgency will be necessary to definitively turn around the company’s fortunes.

      


  • Daniel Loeb Comments on Alibaba Group Holding Ltd

    In our Quarterly Letter two and a half years ago, we argued “the Case for Alibaba.” At the time, Alibaba (BABA) held a leading market position that it was just beginning to monetize (the company had less than $75 million in LTM earnings). Today, the Company has continued its exponential growth, demonstrated significant margin leverage, and is expected to earn over $5 billion this fiscal year. Our enthusiasm for the Alibaba story has underpinned multiple investments at Third Point and now that the company is public, we have established a significant direct investment in Alibaba shares.


    Third Point has met with management several times and is confident that Alibaba can generate long‐term value in its core markets and compete in new ones, making it a compelling potential multi‐year investment. The company has a substantial network effect that creates several large moats around its business, generating significant free cash flow for re‐investment and expansion as well as an unrivaled amount of data on Chinese consumers. We see continued end market growth in Chinese consumer spending and e‐ commerce (as well as global e‐commerce) and continue to believe that Alibaba has considerable additional monetization potential.

      


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